In a chat with ET Now, Harendra Kumar of Elara Capital, shares his views on Tata Motors.

ET Now: What is the call on Tata Motors?

Harendra Kumar: Tata Motors is no longer standalone play, it is more of a global play. So the whole opportunity window is more of how JLR is performing at the given moment of time.

Number two is Tata Motors will be key beneficiary of the currency tailwind that are working in favour because their costs are in local currency and the conversion in the balance sheet for JLR on the standalone will mean higher revenues for JLR plus the valuations are lower than some of the larger luxury carmakers such as BMW.

So the numbers per se are being interpreted differently by the street in terms of standalone as well as the global numbers and the key to watch out here is how JLR performs and that is where the optimism is building up and you could see the stock move up from closer to Rs 280 to Rs 300 and that is what our target is for the next 12 to 18 months.